The FCC Must Upgrade the Lifeline Program

WASHINGTON — On Monday, Free Press submitted comments to the Federal Communications Commission as part of the agency’s proceeding to update the Lifeline program.

Established in 1985 to subsidize basic phone service for low-income households, Lifeline is in need of a “reboot,” says FCC Chairman Tom Wheeler, who in May invited comments on ways to make program funds available for broadband Internet connections.

While supporting the program and the proposed changes, Free Press is urging the agency to take a comprehensive approach to addressing the affordability and competition problems in the nation’s telecommunications marketplace. The lack of choices has pushed costs for essential telecommunications services way beyond the reach of too many.

Free Press Policy Director Matt Wood made the following statement:

“The FCC is right to take aim at the broadband-adoption gap and the digital divide. Telephone and broadband adoption lag for low-income Americans and especially for communities of color, despite Lifeline’s past successes in helping to address these disparities. Implementing the agency’s proposed changes will help the FCC’s ongoing efforts to close these gaps.

“If the FCC wants to make Lifeline more effective and boost competition and innovation in the Lifeline marketplace, it should let recipients apply their Lifeline subsidies to any telecommunications services, including broadband.

“Lifeline’s overarching goal is to make all telecommunications services affordable to low-income Americans. People who qualify for Lifeline should be able to use the $9.25 monthly subsidy on the service that best suits their needs. This flexibility is vital at a time when some low-income households may find Internet access more essential than a voice connection.

“It isn’t enough to update Lifeline. The FCC also needs to devote resources to creating affordable options in the marketplace across the board. The lack of effective broadband competition has a negative impact on everyone seeking access to these essential services.

“Lifeline is but one tool the FCC can use to address the issue of affordability. If the agency’s primary goal is to get as many people as possible using broadband, it needs to take every necessary step to make all broadband services affordable. The FCC should move ahead with its proposed changes to Lifeline — and take other steps to deal with the broader competition crisis head on.”

Free Press’ Lifeline filing is available here.